Many TSX-listed stocks offer reliable dividend income. Notably, some companies have consistently paid and increased their dividends for years, making them top investments to start a passive income stream. However, here, I’ll focus on those that have consistently paid and increased their dividends and have visibility into future payouts.
Against this background, here are five Canadian dividend stocks with years of secure payouts ahead.
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Dividend stock #1
Fortis (TSX: FTS) is a top Canadian stock offering secure payouts ahead. The electric utility company operates in a defensive sector, earning consistent, low-risk income from its rate-regulated assets. Thanks to its predictable and growing earnings, Fortis has hiked its dividend for 51 consecutive years. Moreover, it is well-positioned to continue raising its dividend in the years ahead.
Looking ahead, Fortis plans to invest $26 billion in capital projects, which is expected to increase its rate base significantly. Fortis anticipates a compound annual growth rate (CAGR) of 6.5% in its rate base through 2029. This growth will help increase dividends by 4–6% annually over the same period.
Dividend stock #2
Enbridge (TSX: ENB) also offers secure payouts ahead. The energy infrastructure company is known for its resilient payouts in all market conditions. It has paid dividends for 70 years and increased them for 30 consecutive years. Enbridge’s diversified revenue base, higher asset utilization rate, long-term contracts, and low-risk commercial arrangements position it well to deliver strong distributable cash flow (DCF) per share, supporting its payouts.
Enbridge’s vast pipeline network, focus on low-risk utility-like businesses, expanding portfolio of renewable energy projects, and a growing portfolio of renewable energy assets will drive its earnings and DCF per share at a mid-single-digit rate in the coming years. This will enable the company to increase its dividend in line with DCF per share.
Dividend stock #3
AltaGas (TSX: ALA) could be a solid addition to your portfolio for generating worry-free income. Its highly contracted cash flows and steady earnings growth position it well to consistently pay and increase its dividend. Notably, AltaGas’ earnings per share (EPS) increased at a CAGR of 14% in the last seven years. Moreover, AltaGas has raised its dividend at a CAGR of 6% since 2021.
In the future, its low-risk energy infrastructure platform will provide a stable earnings base. Moreover, ongoing utility modernization efforts and a growing customer base present stable and visible growth opportunities. Plus, the potential to boost throughput capacity with relatively low capital spending could further enhance returns and support higher dividends. With this strong earnings foundation, AltaGas aims to grow its dividend by 5–7% annually through 2029.
Dividend stock #4
TC Energy (TSX: TRP) is another reliable income stock. TRP has raised its dividend for 25 consecutive years. Its earnings come primarily from take-or-pay contracts and regulated frameworks, insulating it from volatile commodity prices. This stability supports consistent dividends and future growth.
TC Energy aims to grow its dividends by 3–5% annually, backed by strong and stable cash flows. The energy infrastructure company’s $28 billion in secured projects and rising energy demand further bolster its long-term outlook. Supported by high-quality, contracted assets and strong system utilization, this energy giant remains a reliable choice for income investors.
Dividend stock #5
Telus (TSX: T) also offers secure payouts ahead. The Canadian telecom giant has a strong track record of profitable growth, which supports its consistent dividend payments. Since 2011, Telus has raised its dividend 27 times and plans to continue rewarding shareholders, targeting annual dividend increases of 3% to 8% through 2028.
Looking ahead, Telus is focused on diversifying its revenue streams and growing its customer base profitably. These moves add long-term stability. Moreover, its low customer churn, cost-cutting efforts, and moderation in capital spending are also expected to boost earnings, helping to sustain and grow future dividends.
